Sources privy to the developments have told the news channel that Vestas is negotiating a deal that will involve buying the 17.6% stake in Suzlon held by promoter Tulsi Tanti and his family, as well as the 23% interest held by investor Dilip Shanghvi.

Once it buys those stakes, the Danish firm plans to kick off an open offer for further shares. Talks are at a serious stage, according to the report.

The reason why Suzlon’s investors are considering such a transaction is the fact that the company has piled up over INR 70 billion (USD 984m/EUR 868.4m) of debt, the news channel said.

Neither Vestas nor Suzlon wished to comment on market speculation when contacted by CNBC-TV18, though a representative of the former noted that it is open to bolt-on acquisitions.

Suzlon responded to a request for clarification from the Bombay Stock Exchange by saying that it is exploring multiple options for debt reduction along with its lenders. It did not give further information.